Provision Fund paying out today

Thank for the update stuartassetzcapital

Which loans will these be.

My understanding on GBBA1 is that whether it has full coverage of current known risks is a bit binary depending upon the castle loan outcome. Either substantial expected coverage excess within the GBBA1 PF or not depending upon that one loan outcome. It is in everyone's interests for that to progress well therefore. The GEA PF was never large relative to the four turbine loans with issues as it wasn't designed for this type of situation however we are writing to everyone very shortly regarding an alternative proposal for those. All other PFs have very substantial coverage levels relative to the total of any known likely losses on loans and also the statistically calculated expected loss levels for the remaining majority of performing loans. The coverage ratios were just updated on the website very recently. Bear in mind that we seek to have a substantial multiple of coverage versus expected losses (typically 2x - 3x and presently higher in some cases) within our live PFs' cash balances and comparison to other companies' PFs that have for example a coverage ratio of c 1x even including future income is somewhat apples and pears and I note this is not fully understood in comments on this board. We aren't happy with the outcome on the GEA but the number of loans in the Access Accounts and the size of its provision fund and coverage ratio is at the best end of our scale in my view. All known issues in any loans in the Access accounts are very comfortably ring-fenced within the AA PF at present and hence how the loans remain tradeable within those accounts and people are not 'stuck' in them. Our £67m of interest earned by investors to date certainly dwarfs the losses to date nut nonetheless all lending does have a risk of capital loss regardless of provision funds and we are endeavoring to achieve far better outcomes for all other PFs than the GEA PF encountered. The nature of hard property security, that is all that we lend against nowadays, is certainly one big contributor to the very low loss rates we have seen elsewhere to the GEA. I hope that this helps.

I'm pretty sure that other companies' PFs with a coverage ratio of c 1x including future income are discussing a coverage ratio for expected defaults rather than for expected losses (they also pay out much earlier in the process, which is why the provision fund has an expected future income). For better like-for-like comparison, what is AC's coverage ratio for expected defaults?

I'm quite giddy with anticipation!

The first two loans that will have a provision fund payout to lenders' cash accounts for capital losses are now in process following work this month that was announced earlier. There is a little remaining work to do on how this is displayed on lenders' transaction histories but suffice to say we are near enough there now and you will be receiving cash in relation to S*** D*** and A*** G*** very shortly. Such transactions will be quicker and easier in the future you will be pleased to hear.